MELBOURNE MORTGAGE FINANCE LENDING UPDATE – June 2025
- Barry Le Brocq
- Jun 16
- 2 min read
Updated: Jul 22
Loan Product Choices
8.70%: normal R/M loan where no interest payments are required
8.20%: normal R/M loan where regular half “interest only” payments are made
7.70%: normal R/M loan where regular full “interest only” payments are made
8.20%: new “Retirement Refinance” loan to pay out existing bank loans where full “P&I” payments are still being made
New Product: “Retirement Refinance” Loan
nearly 30% of people reach retirement age and still have Home Loans that require full P&I repayments
with substantially reduced incomes, full P&I repayments have a serious effect on monthly cash flow
reduced rate of 8.20% / can payout existing P&I loan and any other consumer debts
a Cash Reserve facility of up to $25,000 can be added to cover possible future needs
this product is for refinance applications only
repayments are not required on this new loan / borrower cash flow will improve considerably
Consumer Protections
lifetime occupancy: customer retains full ownership and can live in the house indefinitely
no negative equity: the loan balance can never exceed the value of the house
independent legal advice: required to ensure that customers understand the contract conditions
Centrelink discussions: applicants are encouraged to discuss impact of loan (if any) on entitlements
family involvement: applicants are encouraged to have family members present at application stage
Payout of Existing Debts (subject to valuation and age of younger borrower)
home loan balances / credit card balances / personal loan balances can all be paid out
monthly repayments on these loans will be eliminated
other debts (e.g. private family loans) can also be cleared
loan statements on existing debts are required to confirm balances owing
Full Loan Balance Repayment Triggers
at settlement: when the property is sold, the loan balance is repaid in full
within 5 years: when the last surviving borrower moves into aged care
within 1 year : when the last surviving borrower passes away or ceases to live in the property
Age Restrictions
at least one applicant must be over the age of 60
second applicant can be 55 or older
at age 60, maximum loan is 20% of property value
at age 90 or more, maximum loan is 50% of property value
borrowing limit is determined by the age of the younger borrower
no more than two applicants permitted
Call on 0437417042 or email barry@mmfinance.com.au to discuss individual scenarios.
Referral fee (15% of normal up-front commission) is available
Barry Le Brocq (B. Ec. / Dip. Fin. Services)
Melbourne Mortgage Finance (Reverse Mortgage Loan Specialist)
Mobile 0437417042
(Information is correct as at June 2025)
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